By:  Carona, Shapleigh                                 S.B. No. 393
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Uniform Electronic Transactions Act and electronic
 1-3     records.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 4, Business & Commerce Code, is amended by
 1-6     adding Chapter 43 to read as follows:
 1-7              CHAPTER 43.  UNIFORM ELECTRONIC TRANSACTIONS ACT
 1-8           Sec. 43.001.  SHORT TITLE.  This chapter may be cited as the
 1-9     Uniform Electronic Transactions Act.
1-10           Sec. 43.002.  DEFINITIONS.  In this chapter:
1-11                 (1)  "Agreement" means the bargain of the parties in
1-12     fact, as found in their language or inferred from other
1-13     circumstances and from rules, regulations, and procedures given the
1-14     effect of agreements under laws otherwise applicable to a
1-15     particular transaction.
1-16                 (2)  "Automated transaction" means a transaction
1-17     conducted or performed, in whole or in part, by electronic means or
1-18     electronic records, in which the acts or records of one or both
1-19     parties are not reviewed by an individual in the ordinary course in
1-20     forming a contract, performing under an existing contract, or
1-21     fulfilling an obligation required by the transaction.
1-22                 (3)  "Computer program" means a set of statements or
1-23     instructions to be used directly or indirectly in an information
1-24     processing system in order to bring about a certain result.
1-25                 (4)  "Contract" means the total legal obligation
 2-1     resulting from the parties' agreement as affected by this chapter
 2-2     and other applicable law.
 2-3                 (5)  "Electronic" means relating to technology having
 2-4     electrical, digital, magnetic, wireless, optical, electromagnetic,
 2-5     or similar capabilities.
 2-6                 (6)  "Electronic agent" means a computer program or an
 2-7     electronic or other automated means used independently to initiate
 2-8     an action or respond to electronic records or performances in whole
 2-9     or in part, without review or action by an individual.
2-10                 (7)  "Electronic record" means a record created,
2-11     generated, sent, communicated, received, or stored by electronic
2-12     means.
2-13                 (8)  "Electronic signature" means an electronic sound,
2-14     symbol, or process attached to or logically associated with a
2-15     record and executed or adopted by a person with the intent to sign
2-16     the record.
2-17                 (9)  "Governmental agency" means an executive,
2-18     legislative, or judicial agency, department, board, commission,
2-19     authority, institution, or instrumentality of the federal
2-20     government or of a state or of a county, municipality, or other
2-21     political subdivision of a state.
2-22                 (10)  "Information" means data, text, images, sounds,
2-23     codes, computer programs, software, databases, or the like.
2-24                 (11)  "Information processing system" means an
2-25     electronic system for creating, generating, sending, receiving,
2-26     storing, displaying, or processing information.
 3-1                 (12)  "Record" means information that is inscribed on a
 3-2     tangible medium or that is stored in an electronic or other medium
 3-3     and is retrievable in perceivable form.
 3-4                 (13)  "Security procedure"  means a procedure employed
 3-5     for the purpose of verifying that an electronic signature, record,
 3-6     or performance is that of a specific person or for detecting
 3-7     changes or errors in the information in an electronic record.  The
 3-8     term includes a procedure that requires the use of algorithms or
 3-9     other codes, identifying words or numbers, encryption, or callback
3-10     or other acknowledgment procedures.
3-11                 (14)  "State" means a state of the United States, the
3-12     District of Columbia, Puerto Rico, the United States Virgin
3-13     Islands, or any territory or insular possession subject to the
3-14     jurisdiction of the United States.  The term includes an Indian
3-15     tribe or band, or Alaskan native village, which is recognized by
3-16     federal law or formally acknowledged by a state.
3-17                 (15)  "Transaction" means an action or set of actions
3-18     occurring between two or more persons relating to the conduct of
3-19     business, commercial, or governmental affairs.
3-20           Sec. 43.003.  SCOPE.  (a)  Except as otherwise provided in
3-21     Subsection (b), this chapter applies to electronic records and
3-22     electronic signatures relating to a transaction.
3-23           (b)  This chapter does not apply to a transaction to the
3-24     extent it is governed by:
3-25                 (1)  a law governing the creation and execution of
3-26     wills, codicils, or testamentary trusts; or
 4-1                 (2)  the Uniform Commercial Code, other than Sections
 4-2     1.107 and 1.206 and Chapters 2 and 2A.
 4-3           (c)  This chapter applies to an electronic record or
 4-4     electronic signature otherwise excluded from the application of
 4-5     this chapter under Subsection (b) when used for a transaction
 4-6     subject to a law other than those specified in Subsection (b).
 4-7           (d)  A transaction subject to this chapter is also subject to
 4-8     other applicable substantive law.
 4-9           Sec. 43.004.  PROSPECTIVE APPLICATION.  This chapter applies
4-10     to any electronic record or electronic signature created,
4-11     generated, sent, communicated, received, or stored on or after
4-12     January 1, 2002.
4-13           Sec. 43.005.  USE OF ELECTRONIC RECORDS AND ELECTRONIC
4-14     SIGNATURES; VARIATION BY AGREEMENT.  (a)  This chapter does not
4-15     require a record or signature to be created, generated, sent,
4-16     communicated, received, stored, or otherwise processed or used by
4-17     electronic means or in electronic form.
4-18           (b)  This chapter applies only to transactions between
4-19     parties each of which has agreed to conduct transactions by
4-20     electronic means. Whether the parties agree to conduct a
4-21     transaction by electronic means is determined from the context and
4-22     surrounding circumstances, including the parties' conduct.
4-23           (c)  A party that agrees to conduct a transaction by
4-24     electronic means may refuse to conduct other transactions by
4-25     electronic means.  The right granted by this subsection may not be
4-26     waived by agreement.
 5-1           (d)  Except as otherwise provided in this chapter, the effect
 5-2     of any of its provisions may be varied by agreement.  The presence
 5-3     in certain provisions of this chapter of the words "unless
 5-4     otherwise agreed," or words of similar import, does not imply that
 5-5     the effect of other provisions may not be varied by agreement.
 5-6           (e)  Whether an electronic record or electronic signature has
 5-7     legal consequences is determined by this chapter and other
 5-8     applicable law.
 5-9           Sec. 43.006.  CONSTRUCTION AND APPLICATION.  This chapter
5-10     must be construed and applied:
5-11                 (1)  to facilitate electronic transactions consistent
5-12     with other applicable law;
5-13                 (2)  to be consistent with reasonable practices
5-14     concerning electronic transactions and with the continued expansion
5-15     of those practices; and
5-16                 (3)  to effectuate its general purpose to make uniform
5-17     the law with respect to the subject of this chapter among states
5-18     enacting it.
5-19           Sec. 43.007.  LEGAL RECOGNITION OF ELECTRONIC RECORDS,
5-20     ELECTRONIC SIGNATURES, AND ELECTRONIC CONTRACTS.  (a)  A record or
5-21     signature may not be denied legal effect or enforceability solely
5-22     because it is in electronic form.
5-23           (b)  A contract may not be denied legal effect or
5-24     enforceability solely because an electronic record was used in its
5-25     formation.
5-26           (c)  If a law requires a record to be in writing, an
 6-1     electronic record satisfies the law.
 6-2           (d)  If a law requires a signature, an electronic signature
 6-3     satisfies the law.
 6-4           Sec. 43.008.  PROVISION OF INFORMATION IN WRITING;
 6-5     PRESENTATION OF RECORDS.  (a)  If parties have agreed to conduct a
 6-6     transaction by electronic means and a law requires a person to
 6-7     provide, send, or deliver information in writing to another person,
 6-8     the requirement is satisfied if the information is provided, sent,
 6-9     or delivered, as the case may be, in an electronic record capable
6-10     of retention by the recipient at the time of receipt.  An
6-11     electronic record is not capable of retention by the recipient if
6-12     the sender or its information processing system inhibits the
6-13     ability of the recipient to print or store the electronic record.
6-14           (b)  If a law other than this chapter requires a record (i)
6-15     to be posted or displayed in a certain manner, (ii) to be sent,
6-16     communicated, or transmitted by a specified method, or (iii) to
6-17     contain information that is formatted in a certain manner, the
6-18     following rules apply:
6-19                 (1)  the record must be posted or displayed in the
6-20     manner specified in the other law;
6-21                 (2)  except as otherwise provided in Subsection (d)(2),
6-22     the record must be sent, communicated, or transmitted by the method
6-23     specified in the other law; and
6-24                 (3)  the record must contain the information formatted
6-25     in the manner specified in the other law.
6-26           (c)  If a sender inhibits the ability of a recipient to store
 7-1     or print an electronic record, the electronic record is not
 7-2     enforceable against the recipient.
 7-3           (d)  The requirements of this section may not be varied by
 7-4     agreement, but:
 7-5                 (1)  to the extent a law other than this chapter
 7-6     requires information to be provided, sent, or delivered in writing
 7-7     but permits that requirement to be varied by agreement, the
 7-8     requirement under Subsection (a) that the information be in the
 7-9     form of an electronic record capable of retention may also be
7-10     varied by agreement; and
7-11                 (2)  a requirement under a law other than this chapter
7-12     to send, communicate, or transmit a record by first class mail may
7-13     be varied by agreement to the extent permitted by the other law.
7-14           Sec. 43.009.  ATTRIBUTION AND EFFECT OF ELECTRONIC RECORD AND
7-15     ELECTRONIC SIGNATURE.  (a)  An electronic record or electronic
7-16     signature is attributable to a person if it was the act of the
7-17     person.  The act of the person may be shown in any manner,
7-18     including a showing of the efficacy of any security procedure
7-19     applied to determine the person to which the electronic record or
7-20     electronic signature was attributable.
7-21           (b)  The effect of an electronic record or electronic
7-22     signature attributed to a person under Subsection (a) is determined
7-23     from the context and surrounding circumstances at the time of its
7-24     creation, execution, or adoption, including the parties' agreement,
7-25     if any, and otherwise as provided by law.
7-26           Sec. 43.010.  EFFECT OF CHANGE OR ERROR.  (a)  If a change or
 8-1     error in an electronic record occurs in a transmission between
 8-2     parties to a transaction, the rules provided by this section apply.
 8-3           (b)  If the parties have agreed to use a security procedure
 8-4     to detect changes or errors and one party has conformed to the
 8-5     procedure, but the other party has not, and the nonconforming party
 8-6     would have detected the change or error had that party also
 8-7     conformed, the conforming party may avoid the effect of the changed
 8-8     or erroneous electronic record.
 8-9           (c)  In an automated transaction involving an individual, the
8-10     individual may avoid the effect of an electronic record that
8-11     resulted from an error made by the individual in dealing with the
8-12     electronic agent of another person if the electronic agent did not
8-13     provide an opportunity for the prevention or correction of the
8-14     error and, at the time the individual learns  of the error, the
8-15     individual:
8-16                 (1)  promptly notifies the other person of the error
8-17     and that the individual did not intend to be bound by  the
8-18     electronic record received by the other person;
8-19                 (2)  takes reasonable steps, including steps that
8-20     conform to the other person's reasonable instructions, to return to
8-21     the other person or, if instructed by the other person, to destroy
8-22     the consideration received, if any, as a result of the erroneous
8-23     electronic record; and
8-24                 (3)  has not used or received any benefit or value from
8-25     the consideration, if any, received from the other person.
8-26           (d)  If neither Subsection (b) nor Subsection (c) applies,
 9-1     the change or error has the effect provided by other law, including
 9-2     the law of mistake, and the parties' contract, if any.
 9-3           (e)  Subsections (c) and (d) may not be varied by agreement.
 9-4           Sec. 43.011.  NOTARIZATION AND ACKNOWLEDGMENT.  If a law
 9-5     requires a signature or record to be notarized, acknowledged,
 9-6     verified, or made under oath, the requirement is satisfied if the
 9-7     electronic signature of the person authorized to perform those
 9-8     acts, together with all other information required to be included
 9-9     by other applicable law, is attached to or logically associated
9-10     with the signature or record.
9-11           Sec. 43.012.  RETENTION OF ELECTRONIC RECORDS; ORIGINALS.
9-12     (a)  If a law requires that a record be retained, the requirement
9-13     is satisfied by retaining an electronic record of the information
9-14     in the record which:
9-15                 (1)  accurately reflects the information set forth in
9-16     the record after it was first generated in its final form as an
9-17     electronic record or otherwise; and
9-18                 (2)  remains accessible for later reference.
9-19           (b)  A requirement to retain a record in accordance with
9-20     Subsection (a)  does not apply to any information the sole purpose
9-21     of which is to enable the record to be sent, communicated, or
9-22     received.
9-23           (c)  A person may satisfy Subsection (a) by using the
9-24     services of another person if the requirements of that subsection
9-25     are satisfied.
9-26           (d)  If a law requires a record to be presented or retained
 10-1    in its original form, or provides consequences if the record is not
 10-2    presented or retained in its original form, that law is satisfied
 10-3    by an electronic record retained in accordance with Subsection (a).
 10-4          (e)  If a law requires retention of a check, that requirement
 10-5    is satisfied by retention of an electronic record of the
 10-6    information on the front and back of the check in accordance with
 10-7    Subsection (a).
 10-8          (f)  A record retained as an electronic record in accordance
 10-9    with Subsection (a) satisfies a law requiring a person to retain a
10-10    record for evidentiary, audit, or like purposes, unless a law
10-11    enacted after January 1, 2002, specifically prohibits the use of an
10-12    electronic record for the specified purpose.
10-13          (g)  This section does not preclude a governmental agency of
10-14    this state from specifying additional requirements for the
10-15    retention of a record subject to the agency's jurisdiction.
10-16          Sec. 43.013.  ADMISSIBILITY IN EVIDENCE.  In a proceeding,
10-17    evidence of a record or signature may not be excluded solely
10-18    because it is in electronic form.
10-19          Sec. 43.014.  AUTOMATED TRANSACTION.  (a)  In an automated
10-20    transaction, the rules provided by this section apply.
10-21          (b)  A contract may be formed by the interaction of
10-22    electronic agents of the parties, even if no individual was aware
10-23    of or reviewed the electronic agents' actions or the resulting
10-24    terms and agreements.
10-25          (c)  A contract may be formed by the interaction of an
10-26    electronic agent and an individual, acting on the individual's own
 11-1    behalf or for another person, including by an interaction in which
 11-2    the individual performs actions that the individual is free to
 11-3    refuse to perform and which the individual knows or has reason to
 11-4    know will cause the electronic agent to complete the transaction or
 11-5    performance.
 11-6          (d)  The terms of the contract are determined by the
 11-7    substantive law applicable to it.
 11-8          Sec. 43.015.  TIME AND PLACE OF SENDING AND RECEIPT.
 11-9    (a)  Unless otherwise agreed between the sender and the recipient,
11-10    an electronic record is sent when it:
11-11                (1)  is addressed properly or otherwise directed
11-12    properly to an information processing system that the recipient has
11-13    designated or uses for the purpose of receiving electronic records
11-14    or information of the type sent and from which the recipient is
11-15    able to retrieve the electronic record;
11-16                (2)  is in a form capable of being processed by that
11-17    system; and
11-18                (3)  enters an information processing system outside
11-19    the control of the sender or of a person that sent the electronic
11-20    record on behalf of the sender or enters a region of the
11-21    information processing system designated or used by the recipient
11-22    which is under the control of the recipient.
11-23          (b)  Unless otherwise agreed between the sender and the
11-24    recipient, an electronic record is received when:
11-25                (1)  it enters an information processing system that
11-26    the recipient has designated or uses for the purpose of receiving
 12-1    electronic records or information of the type sent and from which
 12-2    the recipient is able to retrieve the electronic record; and
 12-3                (2)  it is in a form capable of being processed by that
 12-4    system.
 12-5          (c)  Subsection (b) applies even if the place the information
 12-6    processing system is located is different from the place the
 12-7    electronic record is deemed to be received under Subsection (d).
 12-8          (d)  Unless otherwise expressly provided in the electronic
 12-9    record or agreed between the sender and the recipient, an
12-10    electronic record is deemed to be sent from the sender's place of
12-11    business and to be received at the recipient's place of business.
12-12    For purposes of this subsection, the following rules apply:
12-13                (1)  if the sender or the recipient has more than one
12-14    place of business, the place of business of that person is the
12-15    place having the closest relationship to the underlying
12-16    transaction; and
12-17                (2)  if the sender or the recipient does not have a
12-18    place of business, the place of business is the sender's or the
12-19    recipient's residence, as the case may be.
12-20          (e)  An electronic record is received under Subsection (b)
12-21    even if no individual is aware of its receipt.
12-22          (f)  Receipt of an electronic acknowledgment from an
12-23    information processing system described in Subsection (b)
12-24    establishes that a record was received but, by itself, does not
12-25    establish that the content sent corresponds to the content
12-26    received.
 13-1          (g)  If a person is aware that an electronic record
 13-2    purportedly sent under Subsection (a), or purportedly received
 13-3    under Subsection (b), was not actually sent or received, the legal
 13-4    effect of the sending or receipt is determined by other applicable
 13-5    law.  Except to the extent permitted by the other law, the
 13-6    requirements of  this subsection may not be varied by agreement.
 13-7          Sec. 43.016.  TRANSFERABLE RECORDS.  (a)  In this section,
 13-8    "transferable record" means an electronic record that:
 13-9                (1)  would be a note under Chapter 3, or a document
13-10    under Chapter 7, if the electronic record were in writing; and
13-11                (2)  the issuer of the electronic record expressly has
13-12    agreed is a transferable record.
13-13          (b)  A person has control of a transferable record if a
13-14    system employed for evidencing the transfer of interests in the
13-15    transferable record reliably establishes that person as the person
13-16    to which the transferable record was issued or transferred.
13-17          (c)  A system satisfies Subsection (b), and a person is
13-18    deemed to have control of a transferable record, if the
13-19    transferable record is created, stored, and assigned in such a
13-20    manner that:
13-21                (1)  a single authoritative copy of the transferable
13-22    record exists which is unique, identifiable, and, except as
13-23    otherwise provided in Subdivisions  (4), (5), and (6), unalterable;
13-24                (2)  the authoritative copy identifies the person
13-25    asserting control as:
13-26                      (A)  the person to which the transferable record
 14-1    was issued; or
 14-2                      (B)  if the authoritative copy indicates that the
 14-3    transferable record has been transferred, the person to which the
 14-4    transferable record was most recently transferred;
 14-5                (3)  the authoritative copy is communicated to and
 14-6    maintained by the person asserting control or its designated
 14-7    custodian;
 14-8                (4)  copies or revisions that add or change an
 14-9    identified assignee of the authoritative copy can be made only with
14-10    the consent of the person asserting control;
14-11                (5)  each copy of the authoritative copy and any copy
14-12    of a copy is readily identifiable as a copy that is not the
14-13    authoritative copy; and
14-14                (6)  any revision of the authoritative copy is readily
14-15    identifiable as authorized or unauthorized.
14-16          (d)  Except as otherwise agreed, a person having control of a
14-17    transferable record is the holder, as defined in Section 1.201, of
14-18    the transferable record and has the same rights and defenses as a
14-19    holder of an equivalent record or writing under the Uniform
14-20    Commercial Code, including, if the applicable statutory
14-21    requirements under Section 3.302(a), 7.501, or 9.330 are satisfied,
14-22    the rights and defenses of a holder in due course, a holder to
14-23    which a negotiable document of title has been duly negotiated, or a
14-24    purchaser, respectively.  Delivery, possession, and indorsement are
14-25    not required to obtain or exercise any of the rights under this
14-26    subsection.
 15-1          (e)  Except as otherwise agreed, an obligor under a
 15-2    transferable record has the same rights and defenses as an
 15-3    equivalent obligor under equivalent records or writings under the
 15-4    Uniform Commercial Code.
 15-5          (f)  If requested by a person against which enforcement is
 15-6    sought, the person seeking to enforce the transferable record shall
 15-7    provide reasonable proof that the person is in control of the
 15-8    transferable record.  Proof may include access to the authoritative
 15-9    copy of the transferable record and related business records
15-10    sufficient to review the terms of the transferable record and to
15-11    establish the identity of the person having control of the
15-12    transferable record.
15-13          Sec. 43.017.  ACCEPTANCE AND DISTRIBUTION OF ELECTRONIC
15-14    RECORDS BY GOVERNMENTAL AGENCIES.  (a)  Except as otherwise
15-15    provided by Section 43.012(f), each state agency shall determine
15-16    whether, and the extent to which, the agency will send and accept
15-17    electronic records and electronic signatures to and from other
15-18    persons and otherwise create, generate, communicate, store,
15-19    process, use, and rely upon electronic records and electronic
15-20    signatures.
15-21          (b)  To the extent that a state agency uses electronic
15-22    records and electronic signatures under Subsection (a), the
15-23    Department of Information Resources and Texas State Library and
15-24    Archives Commission, pursuant to their rulemaking authority under
15-25    other law and giving due consideration to security, may specify:
15-26                (1)  the manner and format in which the electronic
 16-1    records must be created, generated, sent, communicated, received,
 16-2    and stored and the systems established for those purposes;
 16-3                (2)  if electronic records must be signed by electronic
 16-4    means, the type of electronic signature required, the manner and
 16-5    format in which the electronic signature must be affixed to the
 16-6    electronic record, and the identity of, or criteria that must be
 16-7    met by, any third party used by a person filing a document to
 16-8    facilitate the process;
 16-9                (3)  control processes and procedures as appropriate to
16-10    ensure adequate preservation, disposition, integrity, security,
16-11    confidentiality, and auditability of electronic records; and
16-12                (4)  any other required attributes for electronic
16-13    records which are specified for corresponding nonelectronic records
16-14    or reasonably necessary under the circumstances.
16-15          (c)  Except as otherwise provided in Section 43.012(f), this
16-16    chapter does not require a governmental agency of this state to use
16-17    or permit the use of electronic records or electronic signatures.
16-18          Sec. 43.018.  INTEROPERABILITY.  The Department of
16-19    Information Resources may encourage and promote consistency and
16-20    interoperability with similar requirements adopted by other
16-21    governmental agencies of this and other states and the federal
16-22    government and nongovernmental persons interacting with
16-23    governmental agencies of this state.  If appropriate, those
16-24    standards may specify differing levels of standards from which
16-25    governmental agencies of this state may choose in implementing the
16-26    most appropriate standard for a particular application.
 17-1          Sec. 43.019.  EXEMPTION TO PREEMPTION BY FEDERAL ELECTRONIC
 17-2    SIGNATURES ACT.  This chapter modifies, limits, or supersedes the
 17-3    provisions of the Electronic Signatures in Global and National
 17-4    Commerce Act (15 U.S.C. Section 7001 et seq.) as authorized by
 17-5    Section 102 of that Act (15 U.S.C. Section 7002).
 17-6          SECTION 2.  Subsection (a), Section 191.009, Local Government
 17-7    Code, is amended to read as follows:
 17-8          (a)  A county clerk may accept instruments by electronic
 17-9    filing and record the instruments electronically if the filing or
17-10    recording complies with the rules adopted by the Texas State
17-11    Library and Archives Commission under Chapter 195.  Such an
17-12    instrument is an electronic record, as defined by Section 43.002,
17-13    Business & Commerce Code.
17-14          SECTION 3.  Section 195.002, Local Government Code, is
17-15    amended by adding Subsection (e) to read as follows:
17-16          (e)  Notwithstanding Sections 43.017 and 43.018, Business &
17-17    Commerce Code, a county clerk may accept any filed electronic
17-18    record, as defined by Section 43.002, Business & Commerce Code, and
17-19    may electronically record that record if the filing and recording
17-20    of that record complies with rules adopted by the commission under
17-21    this section.
17-22          SECTION 4.  Chapter 195, Local Government Code, is amended by
17-23    adding Section 195.009 to read as follows:
17-24          Sec. 195.009.  FILING.  For purposes of this chapter, an
17-25    instrument is filed with the county clerk when it is received by
17-26    the county clerk, unless the county clerk rejects the filing within
 18-1    the time and manner provided by this chapter and rules adopted
 18-2    under this chapter.
 18-3          SECTION 5.  Sections 2.108 and 2A.110, Business & Commerce
 18-4    Code, are repealed.
 18-5          SECTION 6.  (a)  Notwithstanding Section 43.019, Business &
 18-6    Commerce Code, as added by this Act, Chapter 43, Business &
 18-7    Commerce Code, as added by this Act, does not modify, limit, or
 18-8    supersede the provisions of Section 101(c) or Section 103(b),
 18-9    Electronic Signatures in Global and National Commerce Act (15
18-10    U.S.C.  Sections 7001 and 7003), as amended from time to time.
18-11          (b)  A regulatory agency of this state, with respect to
18-12    matters within its jurisdiction, by rule or order issued after
18-13    notice and an opportunity for public comment, may exempt without
18-14    condition a specified category or type of record from the
18-15    requirements relating to consent in Section 101(c), Electronic
18-16    Signatures in Global and National Commerce Act (15 U.S.C. Section
18-17    7001), if that exemption is necessary to eliminate a substantial
18-18    burden on electronic commerce and will not increase the material
18-19    risk of harm to consumers.
18-20          (c)  If a regulatory agency of this state, with respect to
18-21    matters within its jurisdiction, determines after notice and  an
18-22    opportunity for public comment, and publishes a finding, that one
18-23    or more of the exceptions contained in Section 103(b), Electronic
18-24    Signatures in Global and National Commerce Act (15 U.S.C.  Section
18-25    7003), are no longer necessary for the protection of consumers and
18-26    that eliminating those exceptions will not increase the material
 19-1    risk of harm to consumers, the regulatory agency may extend the
 19-2    application of Chapter 43, Business & Commerce Code, as added by
 19-3    this Act, to the exceptions identified in that finding.
 19-4          SECTION 7.  Chapter 43, Business & Commerce Code, as added by
 19-5    this Act, does not modify, limit, or supersede Chapter 15, Civil
 19-6    Practice and Remedies Code, or Section 35.531, Business & Commerce
 19-7    Code.
 19-8          SECTION 8.  This Act takes effect January 1, 2002.